The high-stakes trading strategy of the prominent investor known as Machi Big Brother has faced a significant setback following a recent market downturn. According to on-chain monitoring data provided by analyst Yujin, a previously accumulated profit of $16.3 million, generated through aggressive Ethereum (ETH) long positions, has almost entirely retraced. As of October 13, 2026, the trader’s account balance for these positions has dwindled to approximately $60,000 due to a sudden 4% decline in the price of the world’s second-largest cryptocurrency by market capitalization.
Rolling Long Positions and Market Volatility
Since September 3, the investor had been utilizing a rolling long strategy on the Ethereum blockchain, compounding gains as the asset's price appreciated. This method involves using unrealized profits to increase the size of the position, which can lead to exponential gains in a trending market but poses extreme risks during price reversals. The recent volatility in the DeFi ecosystem has highlighted the fragility of such leveraged trades when market momentum shifts abruptly.
The current situation for Machi Big Brother includes the following details:
- Current holdings: 3,500 ETH in long positions.
- Retracement: Over 99% of peak profits lost during the recent dip.
- Remaining equity: Approximately $60,000 to cover margin requirements.
Liquidation Risks and Price Thresholds
The trader's remaining capital is now under immediate threat as the liquidation price approaches. Analysis indicates that if Ethereum sustains a further decline of approximately $80, the remaining funds in the account will likely be insufficient to maintain the collateral requirements, resulting in an automatic liquidation by the protocol. Liquidation occurs when a trader's margin account falls below the required maintenance level, forcing the exchange to close the position to prevent further losses.
The trajectory of Ethereum in the coming hours will be critical for the survival of this large-scale position. While the trader has successfully managed high-volume trades in the past, the current lack of a financial buffer leaves the position vulnerable to even minor price fluctuations in the ERC-20 ecosystem. This incident serves as a stark reminder of the risks associated with leveraged trading and the speed at which significant paper profits can vanish in the decentralized finance markets.
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For educational purposes only. Nothing here constitutes financial or investment advice. Crypto markets are highly volatile — always DYOR before making any decisions.
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